"Windows Live Mail" [WLM] includes a "Contacts" section. In the current release of WLM - the "Contacts" are referred to as "Windows Live Contacts" [WLC].
To transfer the Windows Address Book [WAB]. To transfer the WAB to WLC - do the following:
1 - install Express Assist 9 (EA9) on the machine running Outlook Express (XP, W98, etc)
2 - make a backup copy of the WAB. Note - the WAB is contained within the EA9 "Windows Files" backup group.
3 - copy the backup file from step 2 to the machine running WLM (or to some media that can be read on the WLM machine).
4 - install EA9 on the "target" machine
5 - run EA9 -- click "Restore"
6 - locate the backup from step 3 and "open" it.
7 - choose restore option "Restore or View Data Files"
8 - locate the WAB (in the "Windows Files" backup group).
9 - check the WAB to be restored. (If the target machine is an XP machine - then check the box to restore the Address Book for Import).
10 - click "Restore Now" -- the program will place a copy of the WAB from the OE machine into a folder in your "Documents" folder on the target machine. It will also then show a step-by-step instruction on how to import the WAB into Windows Contacts on Vista. Close this help tips window.
11 - run Windows Live Mail
12 - click on the "Contacts" item (lower left on the WLM window).
13 - go to the "Contacts" menu "File" - "Import" - "Windows Address Book"
14 - Look in the "Documents" folder for the "Restored Address Book.wab" (note - the ".wab" will not show with the default Windows settings)
15 - select the "Restored Address Book" file and "Open" it
16 - finish the Import wizard steps to import the Contacts.